TSX Futures Track Commodities Drop, US Midterm Earnings Focus

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Nov 9 (Reuters) – Futures on Canada’s resource-intensive stock index fell on Wednesday, following weakness in commodity prices, as the dollar stabilized ahead of much-anticipated US inflation data. United States and the outcome of the midterm elections.

S&P/TSX index futures were down 0.2% at 7:15 a.m. ET. U.S. futures were mixed as midterm election results rolled in.

Control of Congress was up for grabs with several races too close to call, leaving it unclear whether Republicans would break the Democrats’ tenuous grip on power.

Historically, stocks tend to perform better under a divided government when a Democrat is in the White House, with investors attributing some of that performance to political gridlock preventing drastic policy changes.

The Toronto Stock Exchange S&P/TSX Composite Index (.GSPTSE) closed Tuesday at its highest level in nearly two months, with gains led by the materials sector on rising metal prices.

The advance could stall as gold and base metal prices slide against a stronger dollar. Meanwhile, crude prices fell 0.6% after industry data showed U.S. crude inventories rose more than expected and on concerns about demand from China.

On the profit side, telecom giant Rogers Communications (RCIB.TO) saw an increase in quarterly revenue, benefiting from higher roaming charges due to a rebound in international travel and customers switching to more expensive plans.

Pot grower Canopy Growth Corp (WEED.TO) announced a lower base loss in the second quarter, helped by increased sales and cost-cutting measures.

($1 = 1.3440 Canadian dollars)

Reporting by Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi

Our standards: The Thomson Reuters Trust Principles.

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